Five reasons why you should outsource your payroll

1. Access to knowledge and expertise - Payroll processing is becoming increasingly complex. Employers, both small and big can find themselves facing fines if they fail to keep up with developments in reporting criteria and legislation. For example, we recently helped a small employer who had registered for a PAYE scheme, sent payments to HMRC for PAYE and NI but failed to send RTI submissions. HMRC issued fines for failure to submit RTI returns when they were due. We successfully managed to appeal the fines on behalf of the client.
   
2. Efficiency through software, process improvement and technology - A key to running a successful payroll outsourcing company is speed and accuracy when processing client payrolls. To this end, we continuously invest in software and technology that speeds up the payroll process whilst maintaining accuracy. There is a lot of choice of payroll software available on the market. However, it’s not a case of one size fits all. Some software is more suitable for running big, complex payrolls but typically, this type of software can also have longer workflow processes. Other software is more suitable for running smaller payrolls. A good payroll provider will be able to provide solutions to challenges that a client might have by adopting new processes or technologies. For example, one of our clients has more than 500 employees and they require bespoke payslips to be generated and then each payslip saved as a secure PDF file with a specific name format. Using a combination of software, process and technology, we are able to accommodate this request with no delay to the payroll run and at minimal cost to the client.
3. Staff continuity - One of the challenges in running a business is managing staff. This includes recruitment, training and retention. Having an in-house payroll person/team means that you have to ensure that there is no disruption to the payroll run when your payroll manager/team member leaves or is absent. Using an outsourced payroll provider on the other hand means that you do not have to worry about your payroll run being disrupted. For example, one of our clients is an established accountancy firm with a diverse portfolio of clients. Following the departure of their Payroll Manager, we were engaged to provide an interim solution. We successfully delivered a high quality service within agreed timescales and cost, ensuring that there was zero disruption to client payrolls. Following the successful completion of the interim contract, an agreement was reached to transition the service into a managed service contract.
4. Cost - The direct cost of running a payroll in-house includes Salary, Employers National Insurance, Training, Software Licence and Printing. Other unexpected costs can include fines when correct procedures have not been followed, interim/temporary cover when your payroll manager/team member is absent or leaves, and time away from making money for your business when payroll issues/queries arise. Outsourced payroll providers on the other hand charge per payslip or per employee and will provide trained personnel as well to deal with payroll queries from your employees or HMRC as and when they arise leaving you free to concentrate on running your business. For most small and mid-sized businesses, these annual savings can make a significant difference to the bottom line.
5. Peace of mind - Outsourcing your payroll does not absolve you of your responsibilities as an employer. However, by having access to the knowledge and expertise from a good payroll provider, you are kept up to date with changes in legislation thus ensuring that your payroll obligations are dealt with efficiently, correctly and most importantly, lawfully.